'rebate-prohibiting' is an English compound formed from 'rebate' and 'prohibit'. 'rebate' originates from Old French (e.g. 'rabattre'), where 're-' meant 'back' and 'battre' meant 'to beat' (leading to the sense of 'beat down' a price); 'prohibit' originates from Latin 'prohibere', where 'pro-' meant 'forward/in front' and 'habere' meant 'to hold'.

'rebate' entered Middle English from Old French, evolving into the modern noun meaning 'a reduction or return of part of a payment'; 'prohibit' came from Latin 'prohibere' through Old French and Middle English into modern English. The compound simply joins the noun and the present-participle verb to create an attributive adjective.

Individually, 'rebate' shifted from a notion of 'beating down' to a price reduction or returned payment, and 'prohibit' retained the sense 'to hold back' or 'forbid'; combined, 'rebate-prohibiting' came to mean 'forbidding rebates' in regulatory or policy contexts.